With our higher interest rate environment, 3% or 5% down may not be enough to be cash flow neutral.

Having $200k and trying to get over a 50% return to start in this economic environment is going to be extremely challenging but even more riskyBesides replacing income look to other areas where you can reduce costs

Our goal is to stay away from the war zone, class d/f stuff. 

You can exchange tax free into about a $2.8mm class B apartment complex.

People invest in all classes of neighborhoods and do just fine, as long as they know what they are getting into and have proper expectations. 

Oregon STR's are a limited asset class and likely to be more difficult to acquire during the next 2-5-10 years. - Comparative Affordability: The Oregon Coast still offers a lot of value in comparison to other coastal states, particularly neighboring California & Washington.

You can definitely still do BRRRR deals in Detroit in today's environment but you have to be careful of the team you're working with.There's a lot happening in the Detroit market in terms of investment and revitalization.

I would also consider Nevada - Midwest:  affordable but know the difference between Class A, B, C and D.

@Chris Rogers higher interest rates have caused most Class A property purchases to NOT cashflow for an approximate 3-5 years.So, many naive investors are chasing Class B, C & D properties to cashflow, WITHOUT fully understanding the scope of the additional risks involved:(Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

These places are usually a peaceful and neutral environment for important discussions.